Many here have argued that the 6% Realt-Whore commission is doomed, like travel agency commissions of yore. The NAR is already under investigation by the Feds for anti-competitive practices, such as restricting access to the many regional MLSs, refusing to work with reduced-commission and/or flat-fee brokers (Help-U-Sell, ZipRealty, etc.). A bursting bubble will no doubt help grease the road to MLS reform and reform-minded legislation, as the myth of RE's invincibility begins to fade. As dreams of early-retirement-through-flipping evaporates, public sentiment will no doubt begin to turn against the NAR.

If we assume that the MLS monopoly will be broken at some point in favor of a free (or inexpensive) internet-based open MLS, what will the new status quo look like? Will we see dramatically lowered commissions (1-2%) as in Europe, or a transition to a fee-for service based structure? Which type of payment structure would you prefer to see and why?

Do you see any chance of political/structural reform on other critical fronts, such as:
--Insulating appraisers from "hit-the-mark-or-you-don't-work" lenders?
--Requiring mortgage lenders (originators) to actually book/assume the risk for some of the toxic loans they dump on investors as MBSs and CMOs?
--Imposing some minimum uniform borrowing standards, such as minimum 20% down, full documentation and proof of legal residence?

It's WAY too late in the game for Joe Schmo investor to start purchasing negative cash flow properties. There are now so many cooks in the kitchen they will (are?) trip(ping) over each other to get the hell out.

Russian-American M.A.D. No, we don’t have that anymore, but nuclear proliferation has actually gotten worse since the Cold War in the sense that even small, unstable countries are more likely to have them. This makes the odds of a terrorist obtaining one –and using it– that much more likely.

Exactly. The chance of a nuclear even has gone up since the end of the Cold War.

You can’t really estimate the risk of HIV infection from a single exposure because of the number of variables. Amount of and pathogenicity of virus the infected person is shedding, exact method of exposure, intactness of exposed epithelial tissue, other infectious (particularly ulcerous) diseases, being circumsized or not, even such things as epithelial exposure to detergents before the exposure to the virus can increase the risk of exposure.

This is a false analogy. Lottery is pure luck with a very remote chance of success. RE is a business. There’s an element of luck in business (like in everything else), but it’s only one of many factors (and typically not the dominant one).

Successful business people like yourself with always over-emphasize on their own merit.

When you are winning, it is because of you. When you are losing, it must be bad luck!

It is all about expected value. We maintain that buying negative-cashflow properties at this point of the cycle will bring a negative expected return.

The lottery analogy is not inappropriate.

Moreover, only a statement can be true or false. My analogy as a statement is true. :)

There is a reason why the standard commission is 6%. Real estate companies could not survive on less. Some seller lists a home with a Realtor. The Realtor markets the house, advertises it, shows it. That costs money. But if the house doesn’t sell, does the Realtor get paid? No.

That is fine than. If they worth 6%, free market will give it 6%, no less.

For the record, I'm 43 and I suppose that's the tail end of the boomer Gen. I dont take it too personally but I think the generalizations are incorrect. The people that are causing the problems are not so much the boomers as they are the super wealthy. Boomers had the same complaint about the "establishment". It's a pretty weak . Certain people in society gain wealth and others dont. If wealth was suddenly distributed evenly it would be back in the hands of the wealthy in a short period of time. It's a personality trait that has little to do with how old you are.
If you doubt this, just look at the gen X real estate agents.

I seem to see a bunch of young poor stupid people driving SUV's. They have a low resale value and the 20 boppers love em with those 20 inch rims. And what the hell is up with those spinners. I think idiot everytime I see those.

I say lay off the boomers. You will be that age someday too if you are lucky. Show some respect for your elders. You might learn something from them.

When you are clearly so good at your job, you should not let a non-competitive system hide such talent. I say you blaze a path, throw down the gauntlet and challenge other realtors to compete with your service and price. That will show them who is who and what is what.

In humble awe of your sheer tumescence

PS,

You, sir, are a true gentleman and visionary! How could ScottC not help but be inspired by such eloquence and good spirit? I expect a favorable reply from him forthwith.

Well, I thought we had pretty much settled the stereotyping "Us vs. Them" thing with Bay Area Homeowner above. But, since you're bringing it up again, I certainly don't hold being age XX against anyone and I'm sure you're a decent guy. I guess "Boomerdom" is really more of a symbol for greed and corruption than an age range to me.

Suffice it to say that Surfer-X and I would agree with this: "The people that are causing the problems are not so much the boomers as they are the super wealthy."

Not quite sure where you're going with the rest of it, though. Sure, unequal distribution of wealth to some extent is a given in any society, given people's varying talents, business acumen, advantages of birth, etc. I don't recall ever denying that or advocating a communist dystopia. Would be nice to have a more level playing field, regardless of one's age, though. I always thought the American ideal was supposed to be meritocracy, not generational wealth transfer through a de facto nobility.

As far as having "respect for my elders" goes, I most certainly do. My father is one of the greatest men I ever knew. He grew up during the Great Depression, fought the Japanese in WWII, and managed to raise a family on a civil servant's salary. I try my best to practice the lessons and good habits he taught me to this day.

Now, as to respecting some smug, greedy, narcissistic ex-hippie for having achieved the amazing feat of of growing old without O.D.ing...

"I say lay off the boomers. You will be that age someday too if you are lucky. Show some respect for your elders. You might learn something from them."

You've got to be fvcking kidding.

Oh my god. I can't believe I'm reading this shit.

The entire Boomer career was made off supposedly giving the finger to the establishment. Socially, economically, politically...in other words EVERTYTHING...about where we are at today is the product of the Boomer excesses.

This is THE hippy ass generation that tuned in, turned on and dopped out.
Theny they became the 70s "Me" generation. Then they morphed into yuppies.

They showed no respect to those that came before them.

When it's all over, we are going to have to practically have start over
from year zero from what they've bequeathed us.

Gen. X/Y are pretty much screwed. It will be up to Gen. Z to recapture th American Dream.

The worst part of the Boomer psychosis is the denial. The denial of their responsibility is their hallmark of the authentic Boomer.

At least most Gen. X'ers admit it when they've done wrong: "Sure, OK I did it. So sue me. I don't have shit!"

But look who their role models were.

It's the friggen' hypocrisy of the Boomers that kills me. The friggen' arrogance!

Hey come on, how about all the cool stuff boomers created during their productive years.
Give credit where credit is due. How about all the social programs initiated. Did you use any financial aid when you went to college? Some group of boomers made that available. That's right kids. The boomers created all the cool stuff that you enjoy everyday and how do you thank them.............with venomous rants. Sure they smoked pot. They smoked pot and kept good jobs. And yes they had sex. And it was good too. It was a sexual free for all, jism shmigma everywhere. In the morning they hauled there ass off to Lockheed or some other corporate gig. So I say lay off the boomers. Give em a nod when you pass them. Tell em thanks for the cool stuff as you give them a wide berth on their sidewalk.

1965 Pell Grant (as the Educational Opportunity Grant Program) started by WWII generation TO BENEFIT Boomers. Pretty good program actually, but --oops--- that program got slashed to the bone right when my generation reached college age --bummer.

1965 Guaranteed Student Loan (GSL) Program, precursor to Stafford Loan Program started by WWII generation TO BENEFIT Boomers. Good news: this one's still going strong. Bad news: it's a market-rate loan, not a grant.

If I remember correctly ScottC works for his mother’s company. It would explain a lot of his success, as well as the ability to keep a job despite an incredible attitude. Plus, the weath he refers to is probably his mother’s.

This could segue nicely into *yet another* anti-Boomer rant, but in the interest of blog harmony, I won't go there (today). :mrgreen: